If you have not bought a life insurance policy, know the benefits, you will also get relief in income tax

Life insurance is very important for anyone. Life insurance provides financial security to your family when money is needed. If anything happens to the policyholder during the policy term, the policy amount goes to the household members. Life insurance cover helps in maintaining the standard of living of your family.

Helpful in long term planning

You can purchase a linked policy to help secure your financial future while providing stability to your family through life coverage. Unit-linked insurance plans allow you to invest in loan and equity funds and build a corpus for the future. This type of policy has a lock-in period of 5 years and allows you to choose a tenure of up to 30 years. You can choose the tenure based on your long-term financial goals.

Life insurance helps in loans

A repayment life insurance plan can help your family members settle any outstanding loans. This is helpful for your family members. Enables them to move forward without worrying about their finances. Young professionals today see insurance only as a means of saving income tax.

Tax benefit up to Rs 1,50,000 under section 80C

Most individuals use life and health insurance policies as an income tax saving tool. A life insurance policy offers tax benefits of up to Rs 1,50,000 per annum under Section 80C. A health insurance policy provides benefits up to Rs 25,000 against health premium under section 80C for self, spouse and children.

Apart from this, a tax benefit of up to Rs 25,000 is given to parents. For senior citizens who are above 60 years of age, this health plan benefit limit is more than 50,000.